HMC Capital upsizes DigiCo REIT IPO to $2.75 billion
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The news: Investment manager HMC Capital has increased the initial public offer size by $100 million to $2.75 billion for its Digital Infrastructure REIT following significant demand from institutional and retail investors.
The numbers: HMC said the IPO size has been increased following strong investor interest, with the REIT’s securities expected to start trading on 12 December. HMC will own $500 million, or about 18% of the REIT on completion.
The listing will increase HMC’s assets under management to about $17.5 billion, significantly increasing its recurring funds management revenue base and delivering material transaction revenues in FY25.
The context: Last month, HMC announced the $1.9 billion acquisition of co-location data centre Global Switch Australia as a seed asset for its new DigiCo platform. It bolstered this by agreeing to buy Australian co-location data centre operating platform iseek for $400 million. It has also agreed to acquire three North American data centres for $1.5 billion.
The ASX-listed HMC Capital also holds large stakes in other listed companies including property developer LendLease, agribusiness GrainCorp and pharmacy wholesaler Sigma Healthcare which will merge with retail chain Chemist Warehouse.
What they said: “The oversubscribed raising and upsized IPO are testament to the significant level of investment demand for DigiCo’s high quality global portfolio, customer base and development pipeline,” HMC chief executive David Di Pilla said.
The source: ASX announcement
